Mothercare Australia goes into administration
Mother and baby products retailer Mothercare has announced that its Australian arm has gone into administration after talks regarding the potential sale of the business came to nothing.
Mothercare announced in November 2012 that it had taken a decision to sell its Mothercare and Early Learning Centre businesses in Australia after the group suffered a £10.6 million write-down of the division.
However, discussions with The Myer Family Company have ended “inconclusively” and Mothercare Australia has been placed into administration.
Mothercare Australia, which is a separate entity to Mothercare in the UK, accounts for circa 7% of International retail sales. Mothercare said the expected profit impact was minimal and did not change the overall view of International profitability going forward.
Never Miss a Retail Update!“Apart from the information contained in this update, there has been no significant change to the financial position of the company,” Mothercare said in a statement.
